DVC Right of First Refusal Report (ROFR): March ’20 Report

Giraffes at Sunset Savannah

Year-to-date (YTD), Disney exercised their right of first refusal (ROFR) on 62 Disney Vacation Club (DVC) contracts, and DVC Resale Market (DVCRM) sold 959, resulting in a 6.5% buy back rate (Contracts Bought Back in 2020/Contracts Sold in 2020). The 2020 waiver rate was 93.5%.

Buy Backs Increase Despite Coronavirus and Disney Parks Shutting Down

Despite sales numbers slowing as expected, the Disney buy back volume grew in March. DVC Resale Market observed 17 and 19 buy backs in January and February respectively. In March, the number of buy backs increased to 26. Roughly the pace of buy backs was consistent throughout the month.

Was Disney planning on buying back more contracts starting in March, and despite everything, they stuck with the plan, or is Disney going to be buying more back because of the pandemic? Given the buy back rate was consistent throughout the month pre- and post- Disney shutting down, it makes me think they were planning on getting more aggressive and stuck to the plan. However, there is the thought that with all the cancelled reservations and points returning to Members accounts that Disney will need an increase in point inventory to handle the demand once Disney reopens. One way to accomplish having more inventory is for Disney to own more points, and thus get more aggressive with ROFR. With Disney parks opening possibly at the earliest June 1st, this theory will be put to the test much more in April.

Highest Monthly Buy Back Numbers by DVC Resort

The DVC Resorts that have experienced buy backs YTD are as follows: Old Key West, Animal Kingdom, Beach Club, Grand Californian, Bay Lake Tower, Boardwalk, Saratoga Springs, Vero Beach and Boulder Ridge.

Highest Buy Back Price Per Point by Resort from March ’19 to March ’20

Highest Buy Back Price Per Point by Resort from March '19 to March '20

What is Right of First Refusal (ROFR)?

For those new to the concept, Right of First Refusal is the option Disney Vacation Club has to purchase any resale contract after a sales price has been agreed upon, and the contract has been executed. Each contract must be forwarded to DVC for review.

DVC typically takes no more than 30 days to review the contract. At their discretion, Disney may step in and purchase the property themselves at the terms agreed upon by the seller and original buyer. DVC then becomes the Buyer, and the purchase is complete. Once DVC is the buyer there is not an opportunity to come back with a better offer in hopes of still purchasing the contract.

Disney Vacation Club Resort Contracts Bought Back in 2020

Please refer to the graph below for the total amount of buy backs at each DVC resort for contracts sold by DVC Resale Market in 2020:

Summary on DVC Buy Backs in March

In March, we observed buy backs from 7 different DVC Resorts, and the majority of buy backs (18 of 26) still came from 2 DVC Resorts, Old Key West and Animal Kingdom

The selling price range and volume summary for all buy backs in March:

Resort Selling Price Per Point Range of Buy Backs in Mar. Number of Buy Backs in Mar.
Animal Kingdom $93 – $102 9
Bay Lake Tower $129 3
Boardwalk $106 – $110 2
Boulder Ridge $90 1
Grand Californian $175 1
Old Key West $90 – $100 9
Vero Beach $59 1

Buy Back Rates for Disney Vacation Club Resorts in 2020

The table below shows the percentage of buy backs for all 9 different resorts that have had at least one contract bought back YTD. Note, there were no buy backs of the following resorts in January through March: Aulani, Grand Floridian, Hilton Head, Polynesian, Riviera Resort, and Copper Creek.

Resort Buy Backs Number Sold Percentage Bought Back
Animal Kingdom 21 164   13%
Bay Lake Tower 4 91   4%
Beach Club 2 34   6%
Boardwalk 3 59   5%
Boulder Ridge 2 23   9%
Grand Californian 3 20 15%
Old Key West 24 89 27%
Saratoga Springs 1 159  <1%
Vero Beach 2 25   8%


Access all DVC resale listings and learn more about buying and selling with DVC Resale Market.



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